POST UTME NILE UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a capital of ₦1,000,000, divided into 10,000 shares of ₦100 each. If the company issues 5,000 shares at a premium of ₦20 per share, what is the total amount received from the issue of shares?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 2
A company has a fleet of 10 vehicles, including 5 cars and 5 trucks. If 2 cars and 3 trucks are involved in an accident, what is the probability that the remaining vehicles will be involved in another accident?
A. 1/3
B. 1/5
C. 2/5
D. 3/5
Question 3
A company is considering the importation of a product from a foreign country. The product has a CIF price of 10,000 and a freight cost of 2,000. What is the total landed cost of the product?
A. 12,000
B. 12,500
C. 13,000
D. 13,500
Question 4
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a correct statement about the registration?
A. The sole trader must have a minimum of two directors.
B. The sole trader must have a minimum of one director.
C. The sole trader must have a minimum of three directors.
D. The sole trader must have a minimum of four directors.
Question 5
A company has a risk management plan that includes the following components: Risk Assessment, Risk Mitigation, Risk Transfer. What is the primary objective of the risk management plan?
A. To minimize losses
B. To maximize profits
C. To transfer risks
D. To assess risks
Question 6
A business law is designed to regulate the conduct of businesses and protect the rights of consumers. Which of the following is a correct example of a business law?
A. Uniform Commercial Code
B. Securities Exchange Act
C. Federal Trade Commission Act
D. Sherman Antitrust Act
Question 7
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has gathered evidence of the company's actions and is considering taking legal action. What is the primary goal of the agency in this scenario?
A. To punish the company
B. To protect the consumer's rights
C. To recover losses for the consumer
D. To prevent future unfair practices
Question 8
A company's articles of association may provide for the appointment of a managing director. What is the primary responsibility of the managing director?
A. To manage the company's day-to-day operations
B. To make strategic decisions on behalf of the company
C. To oversee the company's financial management
D. To represent the company in legal matters
Question 9
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax implications
Question 10
The diagram below represents a flowchart for a banking transaction. What is the effect of a bank's decision to increase interest rates on the flowchart?
A. Increased deposits
B. Decreased withdrawals
C. Increased lending
D. Decreased borrowing
Question 11
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Nigeria producing cotton and importing textiles
B. Nigeria producing textiles and importing cotton
C. Nigeria producing both cotton and textiles
D. Nigeria producing neither cotton nor textiles
Question 12
A company is considering a new marketing strategy to increase sales. Which of the following marketing strategies is most likely to increase sales?
A. Product differentiation
B. Segmentation
C. Target marketing
D. Positioning
Question 13
An insurance policy is a contract between an insurer and an insured party. What is the primary purpose of an insurance policy?
A. To provide financial protection against losses
B. To provide financial rewards for good behavior
C. To provide financial incentives for investment
D. To provide financial assistance for education
Question 14
A sole trader has a business income of ₦1.5 million and a business expense of ₦800,000. What is the net profit of the business?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 15
A sole trader's business is considered a separate legal entity from the owner's personal assets. However, in the event of a lawsuit, the owner's personal assets may still be at risk. What is the name of this risk?
A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Solidarity liability

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